Paytm E-commerce gave Rs 620 Crore to One97 Communications, its parent company, for the transmission of assets of its online platform, as per a filings.
The Alibaba-supported firm, which operates Paytm Mall, the online retail platform, posted Rs 7.3 Crore in incomes with a loss of Rs 13.6 Crore from August 2016 to March 2017, according to its financials. Paytm E-commerce was established in August 2016 after One97 Communications, its parent company, which used to operate ecommerce operations and wallets of Paytm, separated the 2 businesses following the delivery of a license for payments bank.
While the online platform company was demerged, One97 still carries on owning 49% share in payments bank division where rest of the shares is possessed by Vijay Shekhar Sharma, the founder of the company. Paytm E-commerce invested about Rs 20.9 Crore between August 2016 and March 2017. “These are the beginning years for Paytm Mall and we have a long-term viewpoint on making a winning business,” claimed a spokesperson of Paytm Mall to the media in an interview.
“We will act as a tech enabler for the offline retailer society of the country via the O2O (online to offline) model.” Alibaba and Ant Financial, the its payments affiliate, possess a huge share in Paytm E-commerce post a blend of $177 Million previously this year by the former. In an attempt to come out as one of the rivals for the leading place against Amazon India and Flipkart, Paytm E-commerce has allocated Rs 1,000 Crore for cash back, marketing, and promotions in sale of September–October.
The firm aims to post $4 Billion in run rate of average sales by the end of this year. Paytm E-commerce has been advertized to probably turn out to be the medium for consolidation going forward in the online trade segment by Alibaba, which has conducted talks with all huge horizontal companies in the nation. Online retail market in India is anticipated to cross $69 Billion by FY20, as per Goldman Sachs.
Well, for now, the Paytm team is all focused on the ongoing festival sales that will boost the profit charts.